Mendorong Inovasi Pembiayaan Daerah Jawa Barat: Blended Finance sebagai Katalisator Pertumbuhan Ekonomi yang ABSTRACT Berkelanjutan

Abstract

West Java, as one of the provinces with the largest economy in Indonesia, faces significant challenges in financing sustainable development. The high need for investment in various sectors, such as infrastructure, education, and health, cannot always be met by traditional funding sources. Blended Finance, as an innovative financing approach that combines public and private capital, offers a potential solution to address this funding gap. This study aims to analyze the potential of Blended Finance as a catalyst for sustainable economic growth in West Java, as well as identify opportunities, challenges, and optimization strategies for its implementation. Using a qualitative approach, this study found that Blended Finance has significant potential in driving regional financing innovation in West Java, especially in the infrastructure, renewable energy, UMKM, and creative economy sectors. Implementation opportunities include increasing investor interest, government support, and large market potential, but there are challenges such as legal and regulatory frameworks, institutional capacity, and investment risk. To optimize the use of Blended Finance, strategies are recommended to overcome challenges, develop models that are appropriate to the West Java context, and provide supporting policy recommendations. This research has implications for strategic decision-making in innovative and sustainable regional development financing in West Java.